UPDATE 1-Alliance Boots says benefits from working with Walgreen

* Trading environment could improve later in year
(Adds details, background)

LONDON, May 15 (Reuters) - Alliance Boots said it
had seen more benefits than expected so far from its partnership
with U.S. drugstore operator Walgreen Co, and reported
an 18.5 percent rise in underlying attributable profit.

Walgreen bought a 45 percent stake in Alliance Boots in
2012, with an option to buy the rest in 2015.

Alliance Boots, which runs Europe's largest pharmacy chain,
reported sales for the year to March 31 rose 4.3 percent to 23.4
billion pounds ($39.26 billion). Underlying profit was 840
million pounds.

"Our joint synergy programme with Walgreen is increasingly
providing us with significant financial benefits," Alliance
Boots said in a statement. "While still at an early stage, we
are pleased with the overall progress of the programme, total
synergies achieved to date (are) tracking ahead of target."

Deerfield, Illinois-based Walgreens reported a
lower-than-expected profit for the quarter ended Feb. 28 but
said it expected a bigger boost this year from its partnership
with Alliance Boots.

Alliance Boots said particularly good progress had been made
with a joint venture established with Walgreens to lead global
relationships with pharmaceutical and other suppliers. It is
also working on a joint own-brand sourcing programme in Asia and
rolling out selected Boots products in Walgreens stores.
Continuación...